What Makes A Great Business Leader?

Why are there so few excellent companies? Many others just trail behind these leaders? Take General Electric, for example. During Jack Welch’s tenure (1981 - 2001), what were the factors that contribute to General Electric’s market capitalization growth by over US$400 billion?

He was highly-regarded in business circles for his innovative management strategies. He did not use any magic to manage GE so well, but his managers made far fewer mistakes than managers in other mediocre companies.

A single fatal mistake is all it takes to sink your effort, causes your company to go deep into the red, or plunges into bankruptcy. The more mistakes a company makes, the higher the chance it will fold.

If you are the CEO of a company, would you allow your managers to perpetuate behaviors that make them susceptible to making deadly mistakes?Here is the behaviors list that all CEOs should guard against:

1

The Veil of Misinformation

Your managers do not need to lie to you. They just cover up some important information so that you can’t see the whole picture. Hence, you make an incorrect decision that could be fatal.

2

Other People’s Money (OPM) Mentality

Your managers have been throwing money down the drain. This mentality is very contagious.

3

Information Manipulation

Your managers manipulate information to hide their poor performances.

4

The Ostrich Mentality

Your managers miss the opportunity for improvements - like an ostrich which buries its heads into the sand.

5

Management Reporting

Your managers choose the operational indicators that present a good image of their performances instead of those which reflect the actual health of core operations.

6

The Fallacy of working ‘smart’

Your managers say, “‘work smart’ is doing the right thing at the right time.” However, they forget they must first work hard in order to know ‘what is the right thing to do’.

7

Likeability

Your managers want their subordinates to appraise them as likeable managers, not the nasty ones. Hence,they avoid pushing their subordinates too hard.